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Advice on Stock Market Oil Prices

Find more information about Stock Market Oil Prices at the best oniine resource site Teen Analyst.

Q: Our largest insurance company’s bought out, stock market declining, oil prices sky rocketing?
So, are we in a recession/depression yet? Or are they waiting to confirm it once a new president is elected?

A: The whole thing is ready to collapse..
This is what they reported on MSN news..

(A total global meltdown may have been averted by a lucky break: markets in Japan, South Korea and Hong Kong are closed for a public holiday on Monday. )

If a holiday is all that stands between a global meltdown of the economy, then what real hope do we have. When it finally collapses, they will establish a new (wall street) in Europe and use the Euro for our new money, and at that time the US economy will be toast..
We are in a full fledged depression and it is happening whether we like it or not.

Q: Why does war/terrorism and oil/energy prices effect the stock market prices?

A: War/Terrorism brings fear and destruction. People expect the economy to suffer in these events, and so the stock market takes this into account.

Oil/Energy is needed for the operation of all businesses. As those necessary costs change, business becomes more or less expensive to conduct, and the stock market takes this into account.

Q: How much truth is on the Al Gore movie regarding oil market and stock prices set to fall and keep falling?

A: Hes worried because he has a huge stock in Mobile oil.

Q: If the prices on gas and oil rise on the stock market how does that affect prices for us?
I have seen oil and gas prices rise on the stock market. Does that mean our prices, we are charged are going up, the same if there prices go down do ours?

A: To a degree – Yes. In certainty? Not exactly. the prices you see reported are futures contracts. They do some of the price driving but not all.
Also, for whatever reason someone might guess, gasoline and oil prices are nor as closely linked as they were 2-3 years back. Then it went hand in hand, oil up today, gasoline up tomorrow.
Natural gas is at a 19 year low ratio to oil right now. Again, the reason is not clear but it does seem that supply, for the moment, far exceeds demand. Get one good cold month and that will disappear.

Q: How much does crude oil prices affect the stock market, Forex, etc?

A: High oil prices tend to cause inflation, which tends to depress stocks. And a low dollar tends to raise oil prices, as it does with all commodities.

Q: crude oil prices, and the stock market?
Anticipating, crude oil to increase, in for the remainder of 2009. How does one buy crude oil stocks, from the TSX? thanks

A: HOU is the double long etf to play just nymex crude prices

HOD is the double short to short crude prices

HEU is the double long to an increase in the stocks of energy companys

HED is the double short to play energy stocks short

Or you could simply but USO priced in US$

Q: How come every time the stock market goes up so does oil prices?
Its not supply and demand at all for higher oil prices, is it?

A: You have two separate influences that tie them together today.

First you have the better consumer confidence news that drove up the overall market and they figure some of the hoped for spending will be spent on fuel and more production requires energy as well. They are reacting to the better numbers suggesting more demand. So it is a driver to the upside for both.

Side Note: Although consumer confidence numbers look good, it does not always translate in to more spending.

Second, the market caps of the oil and energy companies are huge. So rising prices in the oil stocks has a strong influence on the indexes. That means, should all else be flat in the market, rising oil prices can drive up the indexes.

Q: How Oil Prices,International market,Foreign investment can affect the Indian Stock Market BSE..?
Recently the BSE had very low sensex value…there were several factors influenced the sensex…

A: Every news has impact on stock market.
Share market works on demand and supply.

More Foreign Investments means more buying means prices will go up. More selling by Foreign investments means prices will go down and so the sensex.

Since its global world now. Most of the companies have presence is foreign countries. Like Infosys, Satyam, Wipro, etc.etc. Plus many indian companies they take up projects from foreign countries which in turn increases or decreases the prices of the shares.

Same goes for Oil prices, Demand and Supply. Normally if the price of Oil increases the price of Oil related scrips increases and vice versa.

Recently the BSE sensex fall was due to American Recession, as well as profit booking by Retail investors and Foreign institutions…for various reasons like applying for Reliance Power IPO, etc.

Q: how crude oil prices effect stock market ?

A: bad

Q: As I watch the stock market tumble, is it bad that the oil prices tumble with it?
So is it actually a “bad” thing that when the market falls it make things like “gas prices” more affordable? I’m not that good at economics and wanted someones else’s opinion on the matter.

A: In the short term for the consumer, it is definitely a good thing for the prices to drop. However, it means that resources are not put into developing alternatives to fossil fuels which makes us totally dependent on them. Having no viable alternatives means that oil companies can get away with charging the consumer what they feel like. You can read more on my blog.

Q: Is this a Sad Day for Democrats? With Oil Prices Down & Stock Market Up?
What’s Good for America.
Is Bad for Democrats.

A: source?

Q: how currency rates, oil prices, gold affect stock market?
is there any good book to read about all that , or is there are any stock seminars available in new York area or online? ( please no book from Dummies)

thanks

A: Your question is way too broad. If you asked a random guy on wallstreet (assuming he’d even stop for 2 seconds to talk to you) To really get a good answer, you’d have to ask like 50 questions, because there’s alot of moving parts. The best you can hope for is a path to take; and hopefully along this path you will learn enough to piece things together.

Any macro or micro economics textbooks would be a logical first step, but you probably already read those in highschool for some AP courses. If not, basic economics would be the first lesson required. Macmillan, Olivier, Mankiw, it doesn’t matter, all the texts are the same.

FINRA/NASD professional licensure textbooks will also do the job, and probably much more. Dearborn, Barrons, and Kaplan are the 3 most reputable.

Series 7 (registered representative aka stock broker), will teach you all the basics for equities (stocks, bonds, options, mutual funds etc), markets (economics), and regulations (state and federal).

Series 87 (research analyst) will teach you all about the commodities futures markets (crude, precious metals, grains etc), options, and forex (currency pairs) and and the rules for trading derivatives on any of the major exchanges.

CFA Levels I, II, III (chartered financial analyst, not a FINRA exam) Highest level and most difficult. If you can pass level III, you have a good understanding of all markets and all analytics, both technical and fundamental. But no licenses can compare to experience gained from working in the industry. You can have all the knowledge in the world, and might not be able to piece everything together and see how a marginal change in one can affect another.

You might not want to bother with the seminars in the tri-state area if your goal is purely academic, and you are not looking for investment advisory or financial services. 99.9% of the seminars available are for prospecting new clients.

Q: Why is the government allowing the stock market trade the oil stocks by selling them for inflated prices?
Are they not doing the same thing that ENRON did when there was a so called electric power shortage?

A: Well at least you understand the reason that gas prices are so high. It is not really the stock market, it is the commodities market and investors buying oil futures. These buyers of the futures do not ever even see the oil that they purchased, when the pay date gets close the sell the oil to refiners and make a fat profit for themselves.

The worst of these are probably the international traders as they will buy at fairly low prices and sell to China and India at much higher prices.

Congress needs to put in regulations on these types of traders as they have inflated the our fuel costs. The Windfall Tax bill that was proposed did 3 things, close tax loopholes that the oil companies have been using, place restrictions on international futures traders and add an additional tax on oil companies profits (windfall profit)
The first 2 items need to be done however adding an additional tax to the oil companies does not work, all it would
get passed down to the consumers in the form of increased gas prices. This is why this bill was met with so much opposition.

Q: Can I buy oil on the stock market or is the only way to capitalize on oil prices is to invest in oil companies?

A: Besides USO, there is also USL, UHN, DBO, and OIL.

Q: Why do high oil prices cause the US stock market to go down?

A: Because high oil prices = high energy prices = higher costs for industry = lower profits = lower dividends = lower share prices. ok?

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